Regression

Introduction: The regression method is a technique that helps managers estimate possible future demand. However, the real challenge lies in obtaining reliable data and applying the results of the regression method to managerial decision-making.

Task: Describe the critical importance of good data. Explain the statistical problems that arise when measuring the quantitative relation between the amount demanded and the determinants of demand?

Thank you.

Solution Preview

Regression assists businesses estimate for possible future demand. In today's economy, how can a business properly use regression? Easily.

The trends of the market where the company does business is the regression line that the company will use. If a company is in the car dealership business, a regression chart will properly show the analysis of the previous year's sales and the base economy in the area of the business. These numbers along with what is currently in stock will assist ...